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This is a Simplified Chinese version. The Acer Group was one of the world's largest PC and computer component manufacturers. Members of Acer's R&D management team were considering the location of a new R&D lab with a view to maximizing the effectiveness of their global R&D strategy. They must examine the strategic role the lab should take, based on country strengths in China, as well as how logistical, communication, and cross-cultural issues should be managed, taking into account the social, political and economic environment in China. The case also looks at how critical an effective intellectual property protection strategy is in the globalization of R&D strategy.